Jeonnam Provincial Police have sent 11 suspects, including a 25-year-old gang member identified by

Jeonnam Police Send 11 Suspects to Prosecutors Without Detention in Mokpo Auto Insurance Fraud Case

Jeonnam Provincial Police have sent 11 suspects, including a 25-year-old gang member identified by the surname A, to prosecutors for staging intentional traffic accidents and collecting insurance payouts, mt.co.kr reported. The operation targeted lane-violating vehicles in the Mokpo area of South Jeolla Province over a four-year and six-month period beginning in April 2021.

Investigators found that the ring was led by an action squad member of the local Seo-pa violent organization, alongside several local senior and junior associates. The group deliberately drove or rode as passengers into target vehicles, faked injuries to secure unnecessary hospital admissions, and disguised intentional collisions as routine traffic accidents. The scheme unraveled after an insurance company noticed suspicious patterns and submitted a formal petition to the provincial police agency.

Evidence and Prosecution Details

Following the petition, Jeonnam Provincial Police spent months collecting statements from multiple witnesses, official vehicle damage analysis reports from the National Forensic Service and the Korea Road Traffic Authority, and fraudulent medical records. Investigators also tracked fund transfer records showing how the primary suspects distributed the illicit insurance payouts among themselves. While some suspects initially denied the allegations, police confronted them with physical evidence, prompting full confessions before the case went to prosecutors on October 29.

Recent police statistics highlight fluctuating case numbers for auto insurance fraud across the Jeonnam region, recording 98 cases in 2024, 42 cases in 2025, and 111 cases so far this year. Jeonnam Provincial Police Chief Kim Ho-seung stated that insurance fraud undermines the foundational safety net of the insurance system and drives up premiums for honest policyholders, adding that authorities will maintain a strict response to eradicate such financial crimes.

Suspects Staged Accidents to Claim Insurance Payouts

• How did the suspects carry out the staged accidents?

  The group specifically targeted vehicles making lane violations in Mokpo, deliberately driving into them or staging collisions while riding as passengers to make the crashes look accidental.

• What triggered the police investigation into the ring?

  An insurance company grew suspicious of repeated claims involving the same individuals and submitted a formal petition to the Jeonnam Provincial Police Agency, prompting a months-long investigation.

• When were the suspects officially transferred to prosecutors?

  Police finalized the evidence and transferred the 11 suspects to the prosecutors’ office without detention on October 29.